Allegations of foul-play continue to mount for multi-state producer iAnthus Captial Holdings Inc. (CSE: IAN).
On Monday, the company reported its ex-CEO Hadley Ford — whose resignation was announced in a statement — had taken out two loans that were undisclosed to the company and its shareholders.
iAnthus said a committee of independent directors found Ford entered into two undisclosed loans: one for US$100,000 with a “related-party” and the other for US$60,000 with a “non-arm’s length party.” The investigation found that those loans created a “potential or apparent conflict” and should have been disclosed to the board.
As for the “related-party” loan, the report said that following a tranche of financing between iAnthus and private-equity firm Gotham Green of US$26.15 million on Dec. 20, 2019, Ford and “the managing member” entered into an undisclosed loan for US$100,000. According to iAnthus, the loan bore no interest and payment was due March 31 of this year, which has not been paid.
The committee concluded with the board’s acceptance “that the failure to disclose such personal loans to the board was a breach of the company’s conflict policies and other obligations as an officer and director of the company.”
President and co-founder Randy Maslow has been appointed as the company’s interim CEO.
In a statement on April 6, iAnthus detailed the start of this investigation, as well as a default on a $4.4 million interest payment and a delay of its earnings report. The next day, The Deep Dive outlined the company’s increasing debt load and decreasing revenues in a lengthy article.
Read more: Cannabis lawyer predicts slew of bankruptcies in 2020
Two weeks later, The Deep Dive said it had obtained documents detailing an alleged management buyout of iAnthus, a deal that would involve paying out 70 per cent of its shareholders at $0.50 per share — considerably less than many had invested in the company for.
The Deep Dive followed the initial scoop today by revealing an apparent internal document called Project Greta which confirms the alleged plans to orchestrate the buyout through an entity called Saving Grace Ventures.
Since Jan. 15, 2020, iAnthus’s stock has dropped 87 per cent, to where it sits today at just under $0.30 a share on the Canadian Securities Exchange.
Top photo of Swedish climate activist Greta Thunberg by Anders Hellberg via Wikimedia Commons